What do you mean by retailer explain different types of retailer in brief?

Definition: Retailing is a distribution process, in which all the activities involved in selling the merchandise directly to the final consumer (i.e. the one who intends to use the product) are included. It encompasses sale of goods and services from a point of purchase to the end user, who is going to use that product.

Any business entity which sells goods to the end user and not for business use or for resale, whether it is a manufacturer, wholesaler or retailer, are said to be engaged in the process of retailing, irrespective of the manner in which goods are sold.

Retailer implies any organization, whose maximum part of revenue comes from retailing. In the supply chain, retailers are the final link between the manufacturers and ultimate consumer.

Types of Retailing

  • Store Retailing: Department store is the best form of store retailing, to attract a number of customers. The other types of store retailing includes, speciality store, supermarket, convenience store, catalogue showroom, drug store, super store, discount store, extreme value store. Different competitive and pricing strategy is adopted by different store retailers.
  • Non-store Retailing: It is evident from the name itself, that when the selling of merchandise takes place outside the conventional shops or stores, it is termed as non-store retailing. It is classfied as under:
    • Direct marketing: In this process, consumer direct channels are employed by the company to reach and deliver products to the customers. It includes direct mail marketing, catalog marketing, telemarketing, online shopping etc.
    • Direct selling:Otherwise called as multilevel selling and network selling, that involves door to door selling or at home sales parties. Here, in this process the sales person of the company visit the home of the host, who has invited acquaintances, the sales person demonstrate the products and take orders.
    • Automatic vending: Vending machines are primarily found in offices, factories, gasoline stations, large retail stores, restaurants etc. which offer a variety of products including impulse goods such as coffee, candy, nnewspaper, soft drinks etc.
    • Buying service: The retail organization serves a number of clients collectively, such as employees of an organization, who are authorized to purchase goods from specific retailers that have contracted to give discount, in exchange for membership.
  • Corporate Retailing: It includes retail organizations such as corporate chain store, franchises, retailer and consumer cooperatives and merchandising conglomerates. There are a number of advantages that these organizations can achieve jointly, such as economies of scale, better and qualified employees, wider brand recognition, etc.

With the emergence of new forms of retailing, competition is also increasing between them. It is one of the fast-growing and challenging industry.

If you compare the retail scenario now to that of the early 80s and 90s, you will notice a considerable difference in the type of retail stores that exist. One of the main reasons for this change is the rise of the marketing era. Retailers began to realize that giving customers differential experiences and offerings is a great way to increase profits. This gave rise to different types of retail establishments that we see today that depend on the consumers’ behavior and manufacturers’ abilities. Each of them differentiates themselves from the rest based on the products they offer and the manner in which it is offered.

What is a Retail Store?

A retail store is a business enterprise that sells goods directly to ultimate consumers for non-business use. The goods are generally sold at marked-up prices. There are different types of retail stores that cater to different consumer types and employ different sales techniques.

Retail Mechanism – How does Retail Work?

The first step in the retail mechanism is constituted by the manufacturers. The manufacturers produce goods from raw materials with the help of tools, processes, and labor. On completion of the production of goods, they are sold to wholesalers. Wholesalers sell goods in large quantities to retailers at low prices. Retailers have the option of purchasing the goods from wholesalers or directly from the manufacturers. The retailers then sell these goods to the end consumers at marked-up prices.

1. Department Stores

This type of retail outlet is one of the most complex types of establishments that offer a wide range of products. It can be compared to a collection of smaller retail stores managed by one company. Department stores are well-known for offering products at different pricing levels and for the variety of products that they offer. Some of the common examples of department stores include Macy’s, Shoppers Stop, and Kohl’s.

2. Specialty Stores

Specialty stores are retail establishments that focus on one or two specific categories of products. They are known for having a very narrow product line. A characteristic trait of customers of specialty stores is that they are generally less price-driven. These outlets specialize in a given type of merchandise like men’s clothing, children’s clothing, and sporting goods.

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3. Supermarkets

Supermarkets are one of the most common types of retail outlets. They are large, departmentalized, self-service stores that specialize in food and some non-food items. FMCG products are the main focus in such stores when compared to consumer durables. The product assortment is given great importance in supermarkets as the products need to be displayed in a manner such that customers get attracted to them, and they sell faster.

4. Convenience Stores

Usually located in residential areas, convenience stores offer a limited range of products at premium prices due to the added value of convenience. They are generally small establishments that have limited depth in their product line. Such outlets are known for giving super-fast service with a focused approach.

5. Discount Stores

As the name clearly suggests, discount stores give considerable discounts on the products that they sell. Discount stores compete on the basis of low prices, high turnover, and high volume. One of the best examples of this type of retail format is Walmart whose tagline boasts of saving money.

6. Hypermarkets or Super Stores

Hypermarkets are one step ahead of supermarkets. These stores are huge in size and have many different categories under their belt. These stores are generally not found in malls, rather they are the size of malls themselves. Popular examples of this format of stores are Tesco, Asda, and Costco.

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7. Warehouse Stores

A retail store that sells limited stock in bulk at discounted rates is called a warehouse store. Warehouse stores do invest heavily in visual merchandising and rely on lower prices attracting customers instead.

8. E-Commerce Stores

Virtual stores that enable customers to shop from anywhere at any time are called e-commerce stores. The order is placed through the store’s online portal, and products are delivered to the customer’s given address.

9. Dollar Stores

Dollar stores are a type of discount store. They offer products at meager rates. The only difference is that their prices are fixed.

10. Drug Stores

Drug stores are specialized stores that sell medicines. The newer drug stores though often sell many other things apart from pharmaceuticals, forming their own niche of specialized stores.

For a visual explanation of the types of retail stores, check out this video on YouTube: 


Today’s retail world is changing more rapidly than ever before. The new generation of customers prefers digital shopping over offline. While a greater percentage of retailers have only offline presence today, the future of retail is a combination of offline and online. The global coronavirus pandemic has accelerated this paradigm shift, pushing retailers to rapidly adopt new technologies, develop digital platforms, implement digital modes of payment, and more.

Who is retailer explain the different types of retailers?

8 Types of Retail Stores.
Grocery/Supermarket. Grocery stores and supermarkets provide a general range of food products. ... .
Convenience Store. ... .
Big Box/Superstore. ... .
Specialty Store. ... .
Department Store. ... .
Discount Store. ... .
Off-Price Retailer. ... .

What are the 4 types of retailer?

The four primary types of retailer formats are department stores, supermarkets, specialty stores, and online retailers. Department stores: These are large stores that sell a wide variety of merchandise. Department stores typically have several departments, each selling a different type of product.

What are the types of retailers explain with examples?

Store retailing: This includes different types of retail stores like department stores, speciality stores, supermarkets, convenience stores, catalogue showrooms, drug stores, superstores, discount stores, extreme value stores etc.

What are the 3 types of retailing?

Wholesalers: Purchase finished goods from the manufacturers and sell those goods to retailers in large bulk quantities. Retailers: Sell the goods in small quantities to the end-user at a higher price, theoretically at the manufacturers suggested retail price. Consumers: Buy the goods from the retailer for personal use.